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The content of this report is a summary of the project formulation survey, which wascommissioned by the Ministry of Foreign Affairs of Japan in the FY 2013 and is carried out by
the consortium (Tromso Co., Ltd. and E-Square Inc.). It does not represent the official view ofthe Ministry of Foreign Affairs.

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Ϩ㸬Description of the current situation and development needs of the concerned development
issues in the surveyed country
In Tanzania 400 thousand hectare of forest has been cut down every year for farm expansion,excessive pasturing and logging for making firewood and charcoal. Estimated loss of four million haof forest between 2000 and 2010 is the fifth worst in the world. Moreover, forested land per capita has
declined significantly from 6.3 ha as of 1960 to 0.7 ha at 2010. Especially deforestation in and around
Dar es Salaam area is significant due to the recent population increase coupled with the expansion ofresidential area.
Since 2001, the government of Tanzania has launched afforestation campaign which targets toafforest 1.5 million trees in each district annually. Unfortunately it seems difficult to meet the target
and the result shows it only catches up by the half of the pace of annual deforestation based on aresearch.
According to a study conducted by the United Nations, 94% of the household cooking fuel in
Tanzania relies on biomass fuel such as firewood and charcoal. Increasing demand for firewood andcharcoal caused by the growing population accelerates deforestation and devastated land which
adversely affects the local farmers whose livings are dependent on natural resources. Under suchcircumstances, it is necessary to secure alternative fuels which can be substituted for firewood andcharcoal.
In Tanzania 74 % percent of population live in rural area. While the basic needs poverty level in
Tanzania urban area is 21.7 percent, the levels is 33.3 percent in rural areas. Job creation is needed
especially in rural area.
ϩ㸬Possible applicability of the SME's products and technologies, and prospects for futurebusiness development
Tromso Co., Ltd. possesses a unique technology to produce briquette fuels from underutilized ricehusks by introducing its rice husk briquette machines to rice mills that are seeking for effective use oftheir rice husks.
The company plans to form alliances between local official organizations (KIDT, SIDO, DIT andetc.) to reduce manufacturing and maintenance cost, promote localization as well as develop a businessmodel. This enables to provide machines at affordable price for Tanzanian market by expanding theratio of local production except rather complex core parts that are related to grinding and briquetting
structure. Tromso will establish business by providing training for production management andmaintenance capacity and by providing core machinery parts.
Ϫ . Verification of adaptability of the SME's products and technologies to the surveyedcountry (Demonstration and pilot survey)
Demonstration programs were conducted to introduce the rice husk briquette machine at Dar esSalaam Institute of Technology (DIT) and Kilimanjaro Industrial Development Trust (KIDT) locatedin Moshi with 130 participants joining from the governments of Tanzania, NGOs, private sectors andJapanese aid organizations.

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Through the programs Tromso has successfully demonstrated to produce high quality briquette fuelsusing Tanzanian long-grain rice husks which are different from Japanese short-grain type. Thecompany received high interests in this machine from various sectors in Tanzania. In addition, wewere able to form partnerships with relevant organizations (KID, SIDO and DIT) through thisdemonstration program.
ϫ㸬Expected development impact and effect on business development of the proposing SME
in the surveyed country through proposed ODA projects
Rice husk briquettes can curb the demand for firewood and charcoal contributing to the preventionof further deforestation. One rice husk briquette machine can produce 180 ton of rice husk briquettes
which have the equal the preservation of 22.5 ha of forest if the briquettes substitute for the sameamount of charcoal. The forest preservation effect expands as more machines are installed.
Also, producing and selling the briquette fuels made from rice husks creates new business andemployments (2.5 jobs created per machine). In addition, assembling the rice husk briquette machines,
producing machinery parts and maintaining the machine in Tanzania result in technology transfer fromJapan, which shall contribute to industrial development of Tanzania.
In order to commercialize the rice husk briquette machine, it is necessary to reduce the selling pricefrom USD 63,000$ in Japan to 30,000$ in Tanzania considering the affordability. For that purpose,Tromso will simplify the structure and partly outsource the manufacturing and assembly of themachine to partners in Tanzania.
Tromso, can benefit from mass-production of core parts by expanding its market internationally. It
will make a favorable impact to the domestic sales if the international sales result in cost reduction ofcore parts of the machine.
Ϭ㸬Proposals for formulating ODA projects
The current machine is relatively highly-priced because of its automation and safety features. It isrequired to simplify the structure with low production cost in order to penetrate within the Tanzanianmarket. It is also required to transfer technologies and know-hows for assembling the equipment,
manufacturing the machinery parts and maintenance work. In addition, educational activities shall beorganized as the briquette fuel business is not familiar in Tanzania at this point.
Tromso and E-Square propose to use the schemes of ‘Pilot Survey for Disseminating Small andMedium Enterprises Technologies’, ‘Technical Cooperation, ‘JICA Volunteer Program’ and ’Grant Aidfor Grassroots Human Security’ to solve above issues.
Type䠄Project Formulation Survey䠅
Tanzania: Study on an Introduction of Rice Husk Briquette Machine
SMEs and Counterpart Organization
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N
Name
off SME䠖Tromso
SME TCo.,
Co Ltd.
CLtd
L d andd E-Square
ESInc.
Location of SME䠖Hiroshima Pref., JapanSurvey Site 䞉 Counterpart Organization䠖KIDT (Kilimanjaro Industrial Development Trust), SIDO(Small Industries
Development Organization), Dar es Salaam Institute of Technology (DIT)

Concerned Development Issues

Products and Technologies of SMEs

¾ Facing chronic energy
energ shortage duddue
e to population
growth, economic development and urbanization¾ Rapid deforestation caused by increasing demandof firewood and charcoal used by over 90% of thenationality for cooking¾ Lacking appropriate technology or know-how inorder to utilize the rice husks which are byproductsof rice, one of the staple foods in Tanzania¾ Rural area needs more employment opportunities¾ An innovative
inno ati e machine which
hich can pro
process
oces ricehusks into briquette fuels¾ A proprietary technology to reduce maintenancefrequency by unique mechanism and hardsurfacing treatment technique¾ While advanced technology is required in grinding,pressing and forming process, local sourcing andproduction are possible for other functions of themachine as the rest is relatively simply designed

Proposed ODA Projects and Expected Impact¾ Introduce
I t dththe ricei hhuskk bbriquetteiiquette
tt machine
hi tto local
l l partners
tandd promotet llocalization
localizat
li ti off maintenance,i tassembling,
bliproduction through MOFA/JICA’s Pilot Survey for Disseminating SMEs Technologies and other schemes.
¾ Introduce the locally optimized machines to rice mills and large farms resulting in the preservation of forest andcreating employment

Future Business Development of SMEs¾
¾Tromso supplies the core parts of the machine and parts that is difficult to source locally. Thecompany can reduce cost by producing and assembling other parts on a local basis.
nThe cost reduction of core parts by mass-producing also reinforces Tromso’s business within Japan